Midday Commentary: Fluidigm launches $175 million convertible; WellPoint lower after earnings

By Rebecca Melvin

New York, Jan. 29 - Convertibles players were eyeing a new $175 million deal launched by Fluidigm Corp., a California-based integrated microfluidic circuit systems company, early Wednesday.

The planned 20-year convertible senior notes were assuredly cheap, one Connecticut-based source said. But it was difficult to determine specific valuation inputs because the company is acquiring a private company for cash and stock and currently has no debt, the source said.

Elsewhere, earnings season was in full gear, with many reports from convertible issuers.

WellPoint Inc.'s 2.75% convertibles traded down a couple of points to 125.4 to 125.95, according to Trace data, after the Indianapolis-based health benefits company reported quarterly earnings and revenue that were in line with expectations but guided full-year 2014 revenue slightly below estimates.

Illumina Inc.'s 0.25% convertibles due 2016 were trading up in line with the underlying shares of the San Diego-based genetic sequencing company, an East Coast-based buysider said.

Illumina reported fourth-quarter net income of $81 million, or 56 cents a share, compared to $72 million, or 53 cents per share, in the year-earlier period.

Excluding items, Illumina earned $65 million for the quarter, or 45 cents per share, compared to $57 million, or 42 cents per share, for the year-earlier period. Revenue was up 25% to $387 million.

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